Dividend Distribution Tax

Dividend Distribution Tax was presented in Finance Act 1997 as Section 115-O under Chapter XII-D of Income Tax Act, 1961. It is the tax imposed on the amount distributed by the company by the method of a dividend. It is payable in addition to income tax. The company shall be accountable to pay the tax within fourteen days from the date of announcement of dividend or payment of dividend or distribution of dividend.

Question for the Day on the Topic

Consider the following statements

  1. Dividend Distribution Tax imposed on the amount distributed by the company by the method of a dividend.
  2. The company shall be accountable to pay the tax within fourteen days from the date of announcement of dividend

Select the correct ones

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: C

 

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